General contractors, remodelers, and small construction companies send invoices for residential and light commercial work such as remodels, additions, decks, framing, concrete, and repairs. Bills usually cover labor, materials, subcontractor work, equipment rental, permits, and change orders, often in stages tied to project progress.
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Invoice_1001_Client_2026-10-14.pdf
Construction work is priced several ways. Fixed-price (lump sum) contracts are common for defined residential jobs, with payment split into a deposit and progress draws tied to milestones such as foundation complete, rough-in passed, or drywall hung. Cost-plus contracts bill actual labor and materials plus a markup, often 10-20% for overhead and profit, and suit jobs with unclear scope. Time-and-materials billing charges an hourly labor rate plus materials, and is common for repairs and small jobs. Some trades and tasks are quoted per square foot, such as framing, flooring, or concrete flatwork. Subcontractor costs are usually marked up 10-20%. Change orders should be priced and approved in writing before the extra work is done, then added to the next invoice as separate line items.
| Service | Priced | Typical range |
|---|---|---|
| General contractor labor (T&M) | per hour | $50-120 |
| Carpenter / framing labor | per hour | $45-95 |
| Remodeling project management fee (cost-plus) | percent of cost | 10-20% |
| Concrete flatwork (driveway, patio, slab) | per sq ft | $6-14 |
| Deck construction (pressure-treated, installed) | per sq ft | $25-55 |
| Framing (labor only) | per sq ft | $4-10 |
| Drywall hang, tape, and finish | per sq ft | $2-4 |
| Equipment rental billed to client (mini excavator, lift) | per day | $250-600 |
Typical US ranges. Rates vary by region, experience, and job size.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Progress draw 2 of 3: Framing complete and rough-in inspection passed (Kitchen and mudroom addition, 280 sq ft) | 1 draw | $14,500.00 | $14,500.00 |
| Lumber and sheathing materials (per attached receipts) | 1 lot | $6,200.00 | $6,200.00 |
| Carpentry labor, additional blocking and headers at owner request (Change Order #1) | 18 hours | $75.00 | $1,350.00 |
| Mini excavator rental for footing trench repair | 2 days | $350.00 | $700.00 |
| Building permit fee reimbursement (city of record) | 1 permit | $685.00 | $685.00 |
| Total | $23,435.00 | ||
Notes: Contract total $46,000; Change Order #1 approved 5/14 for $1,350. Payment due within 10 days of invoice date. Late balances accrue 1.5% per month. Accepted: check, ACH, or card (3% fee on cards). Next draw due at drywall completion. License #CGC-123456.
Many states require the license number on contracts and sometimes on invoices, and clients and lenders often want it for their records.
Ties the invoice to a specific job and contract, which matters when you have several jobs running or the owner differs from the billing party.
Progress payments hold up better when they match a stated milestone or schedule of values, and lenders often require this before releasing funds.
Keeps added work from being disputed later and shows the original contract amount versus the revised total.
Cost-plus and T&M clients expect proof of cost, and it speeds approval when a bank or owner reviews the bill.
Clients and lenders often require lien waivers with each payment, and listing subs clearly shows who has been paid.
These are often reimbursed at cost and should be shown separately from labor and materials.
Deposits of 10-30% at signing are common, though some states cap the maximum deposit on residential work, so check your local rules. Progress payments are usually tied to milestones, with the final payment due at substantial completion or after the punch list is done. Net 7 to net 15 is typical for draws, and many contractors hold final payment until the final inspection or certificate of occupancy. Late fees of 1-1.5% per month are common if stated in the contract. Checks and ACH are standard for larger amounts, and cards are accepted by many contractors with a surcharge where allowed. Keep preliminary notices and lien deadlines in mind, since in many states you must file notices on time to preserve lien rights.
Tie draws to real progress and keep them close to the cost incurred. Draws that run far ahead of the work can violate state rules and cause disputes or lender pushback.
Verbal approvals are hard to collect on. A one-page change order with scope, price, and any schedule impact prevents most end-of-job fights.
Many states require preliminary notices within a set number of days of starting work. Missing them can cost you your lien rights, so calendar them at job start.
Provide conditional waivers with the invoice and unconditional waivers when paid. Collect them from your subs too so the owner is protected and your payments are not held up.
Large material orders can strain cash flow. Bill deliveries on the next draw or ask for a materials deposit on big or special-order items.
Follow the payment schedule in your contract. Fixed-price jobs usually bill at milestones, while T&M and cost-plus jobs are often billed weekly or every two weeks. Short repairs are billed when finished.
Yes, if your contract says so. Typical markups run 10-20% on materials and subs. On cost-plus jobs, state the markup or fee percentage in the contract so there are no surprises.
Retainage is a percentage, often 5-10%, held back from each payment until the project is complete. It is more common on commercial work and some public jobs. Show the amount withheld on each invoice and bill it as a separate release invoice at completion.
It depends on the state and the type of contract. In many states contractors pay tax on materials and do not charge it to the client on lump-sum work, while others require tax on materials or labor in certain cases. Check with your state revenue department or an accountant.
Send a written reminder referencing the contract and due date, then a formal demand letter. If that fails, consider a mechanics lien, which has strict deadlines in most states, or small claims or civil court. An attorney can help with lien filings.
Send a Construction estimate for approval, then turn it into an invoice when the work is done.
Construction estimate template